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Dáil Éireann - Private Members Business (Fianna Fáil)
Wednesday 1 March  2017


“That Dáil Éireann:
notes:
— that almost three years on from the collapse of Setanta Insurance in April 2014, some 1,666 open claims remain unsettled at an estimated cost of up to €95.2 million;

— that the liquidator of Setanta Insurance, which was prudentially regulated in Malta, has said he will not be in a position to meet more than 30 per cent of claims;

— the enormous and lasting damage caused to people’s lives by the unacceptable delayin settling claims;

— that while people’s lives are on hold, a Supreme Court judgment is awaited on who will foot the bill for the collapse of Setanta Insurance;

— the collapse last year of Enterprise Insurance, which was prudentially regulated in Gibraltar, affecting 14,000 motor insurance customers with over €6 million in claims
outsanding;

— that the failure of foreign-regulated motor insurance firms is directly pushing up the cost of insurance for motorists in Ireland;

— that under European Union (EU) ‘Freedom of Services’ rules an insurance company can be prudentially regulated in any member state and can avail of the ‘passporting’
provisions to sell insurance business in Ireland;

— that the Central Bank of Ireland has raised concerns about certain motor insurance firms prudentially regulated in Gibraltar and selling motor insurance business in
Ireland;

— that the Department of Finance published in July 2016 the Report of the Review of the Framework for Motor Insurance Compensation in Ireland but there remains no
agreement with the insurance industry on the implementation of the new proposals including the respective roles of the Insurance Compensation Fund and the Motor
Insurers’ Bureau of Ireland;

— that in the event of another collapse of a firm selling motor insurance, there is still no agreement on who is responsible to meeting the cost of claims and, above all else, no
clarity for consumers; and

— that there are 23 insurance firms presently on the Motor Insurers’ Bureau of Ireland membership list as of February 2017 who are listed as ‘Freedom of Services’ firms
including ten which are prudentially regulated in Gibraltar; calls on the Central Bank of Ireland to:

— undertake an awareness campaign to ensure that motorists are fully informed about the different regulatory status of firms selling motor insurance in Ireland and that
consumers are aware of the difference between prudential regulation and regulation for conduct of business purposes;

— formally raise any concerns it may have with the relevant European authorities so as to ensure that the system of regulation of insurance firms across member states
involves common standards which are applied consistently; and

— address any staffing and resourcing issues which may currently restrict its ability to supervise and regulate the insurance sector; and
calls on the Government to:

— provide the necessary resources from the Insurance Compensation Fund to ensure the liquidator can address all outstanding claims without further delay, pending the
Supreme Court judgment on who is responsible for the cost of outstanding Setanta Insurance claims;

— consider taking legal action against the Maltese and Gibraltar authorities for losses arising from inadequate regulation of Setanta Insurance and Enterprise Insurance
respectively;

— finalise the Motor Insurance Compensation Framework so that there is absolute clarity on the respective roles of the Insurance Compensation Framework and the
Motor Insurers’ Bureau of Ireland in the event of the future collapse of motor insurance firms selling in Ireland;

— provide an urgent update as to when the final bill for the collapse of Quinn Insurance will be known and the implications for the future application of the Insurance
Compensation Fund levy of two per cent;

— raise concerns at EU level about ‘regulatory shopping’ by United Kingdom (UK) based financial services firms seeking to preserve access to the EU following Brexit;
and
— clarify the impact Brexit will have on the motor insurance market in Ireland, including the issue of ‘passporting’ in from the UK and Gibraltar.” — Michael McGrath, Bobby Aylward, John Brassil, Declan Breathnach, James Browne, Mary Butler, Thomas Byrne, Jackie Cahill, Dara Calleary, Pat Casey, Shane Cassells, Jack Chambers, Lisa M. Chambers, Niall Collins, Barry Cowen, John Curran, Stephen S. Donnelly, Timmy Dooley, Sean Fleming, Pat the Cope Gallagher, Seán Haughey, Billy Kelleher, John Lahart, James Lawless, Marc MacSharry, Micheál Martin, Charlie McConalogue, John McGuinness, Aindrias Moynihan, Michael Moynihan, Eugene Murphy, Margaret Murphy O'Mahony, Darragh O'Brien, Jim O'Callaghan, Éamon Ó  Cuív, Willie O'Dea, Kevin O'Keeffe, Fiona O'Loughlin, Frank O'Rourke, Anne Rabbitte, Eamon Scanlon, Brendan Smith, Niamh Smyth, Robert Troy.

[24 February, 2017]